AmInvest has launched its New China Sectors Index Fund (“Fund”) that will enable investors to ride on the potential growth of the flourishing consumer and consumer-related sectors in China due to that country‘s rising local purchasing power. The Fund will feed into the ICBC CSOP S&P New China Sectors ETF (“Target Fund”), which tracks the performance of S&P New China Sectors (A-shares Capped) Index.
Commenting on the launch, Ms. Tracy Chen Wee Keng, Chief Executive Officer of AmInvestment Bank Berhad said, “The Fund is timely as it is positioned to capture the potential new growth sectors of China whose economy has been transitioning from an investment-led to consumption-led growth model. Whilst China’s traditional sectors such as energy, materials and industrials have shown signs of a slowdown in growth, new sectors such as consumer, communications, healthcare and technology are driven by the continued growth of consumer demand.”
“AmInvest is excited to again partner with CSOP Asset Management Limited , which is one of the largest and most active exchange traded fund (ETF) issuers in Hong Kong1. Demographics and consumer trends will continue to shape China’s consumer landscape for the next decade of growth,” added Ms. Goh Wee Peng, Chief Executive Officer of AmFunds Management Berhad.
Driven by domestic demand, there are several underlying factors that support consumer growth in China. Over the past seven years, China’s annual growth rate of disposable income per capita, driven primarily by the rise of the middle class, has exceeded 8%2. Singles’ Day, the world’s biggest online shopping event in November last year, garnered an outstanding total spending of RMB965.1 billion3 (approximately RM629.4 billion) despite the slowdown in China. The shifting patterns of consumer spending in China’s ageing society have also supported demand-driven sectors such as insurance, medical care and fitness4.
The Fund’s base currency is Hong Kong Dollar (“HKD”). It is offered for subscription to sophisticated investors in HKD and Ringgit Malaysia (“RM”) and in RM-Hedged classes at an initial offer price of HKD1 and RM1 per unit respectively, during the initial offer period which ends on 20 June 2022.
AmInvest is the brand name for the funds management business of AmFunds Management Berhad and AmIslamic Funds Management Sdn Bhd.
For more details on the Fund’s features and risks, please refer to the AmInvest Information Memorandum for New China Sectors Index Fund dated 31 May 2022 via www.aminvest.com.
Notes and Sources:
1 CSOP Asset Management Limited, March 2022
2 Annual growth rate of China’s residents’ disposable income per capita from year 2014 to year 2021, WIND, People’s Bank of China, United Nations, CSOP Asset Management Limited, January 2022
3 Singles Day from 1 November 2022 to 11 November 2022, CSOP Asset Management Limited, March 2022
4 National Bureau of Statistics, World Health Organization, Statista, CSOP Asset Management Limited, January 2022
